[jira] [Created] (SDAP-331) Outsourcing and Dedicated Teams: Comparing Two Development Models

["Giancarlo Esposito (Jira)" <ji...@apache.org>]

Giancarlo Esposito created SDAP-331:
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             Summary: Outsourcing and Dedicated Teams: Comparing Two Development Models
                 Key: SDAP-331
                 URL: https://issues.apache.org/jira/browse/SDAP-331
             Project: Apache Science Data Analytics Platform
          Issue Type: Bug
            Reporter: Giancarlo Esposito


In a dynamically changing world, in order to produce a high-quality and competitive product, it is no longer enough to write a detailed specification (which will take at least 2-3 months), and then simply develop the necessary product.

Nowadays, the time requires close contact of the development team with managers, marketers, business analysts, as well as constant feedback from users.

With this approach, classic outsourcing models can be ineffective, forcing both customers and developers to look for new models of cooperation.

This article is devoted to the analysis and comparison of two popular models of software development - outsourcing and dedicated team. We will try not only to consider the advantages and disadvantages of each of them, but also to answer the question of which model will be preferable for certain types of projects.

 

First of all, for a better understanding of the topic itself, we will give them definitions.

*Dedicated tea -* a model in which the work on the project is carried out according to the tasks specified by the customer, who controls the workflow, while the team is busy only with his project. In fact, he can hire and fire employees and regulate the workload of the team. The company takes care of all the worries associated with the office, communication and organization of the workflow.

*Outsourcing* - a model in which the company hires the necessary specialists “from outside”, and the work process is determined by the internal processes of the outsourcing company.

Let's take a closer look at each of the models.

 

*Dedicated team*

By choosing a dedicated team model for your project, you get full control over its work. Specialists of the dedicated team are more deeply immersed in the affairs of your organization, better understand the processes functioning in it, its goals, and also almost always focus more on the result of the project than the same specialists working in the framework of outsourcing.

At the same time, the productivity of employees increases, and team cohesion arises. Also, one of the main advantages of the dedicated team model is the transparency of the communication process: you can fully control your specialists, assign them a schedule convenient for you, distribute tasks between them. Constant feedback allows us to take into account all the requirements and comments of the client and make the necessary changes in time.

All the advantages of this model are especially well revealed in long and complex projects.

 

*Outsourcing*



With the outsourcing model, the work process takes place in accordance with the regulations set by the outsourcing company, which means that the specialists working on your product can be simultaneously employed on several other projects.

As a result, their work is often scheduled several weeks in advance, and changes to the work schedule due to additional workload from other customers, unforeseen difficulties, problems or delays often lead to significant time and financial costs.

The advantage of choosing this model is that prices with it are usually lower than with a dedicated team model, however, it should be remembered that any changes in the project, delays in developers entail changes in the budget, and there is a share of risk in this.

The outsourcing model usually has two payment options: on time (usually hourly) or a fixed payment per volume of work. In the latter case, the team performs strictly coordinated work, and any change in tasks is coordinated separately, which sometimes takes a lot of time.

 

For clarity, let's classify all of the above.

*Advantages of the Dedicated Team Model:*
 * involvement of developers in the project - 100%;
 * the ability of the employer to fully control the work of the team;
 * a better understanding of the goals and objectives of the company itself on the part of the developers;
 * team cohesion;
 * constant feedback;
 * better and more complex execution of tasks;
 * fixed monthly payment (depends on the size of the team).

 

*Outsourcing benefits:*
 * usually lower prices than with the dedicated team model, but the customer must provide a high-quality technical specification;
 * technical risks are on the side of the developers.

 

As we can see, each model is good in its own way. It all depends on what exactly you need. For complex projects that require significant effort and the need to meet short deadlines, the IT outsourcing model will not be the best solution.

However, for small projects that most likely won't take long, it can be a great choice. In this case, you are unlikely to strongly feel its shortcomings, and the prices with it are usually lower than when hiring a dedicated team (but do not forget about the risks! Sometimes due to budget changes due to various obstacles, prices end up even higher than with a dedicated team ).

If you need to get a working solution with a minimum budget, then you should also choose an outsourcing model.

If your project is rather complex and large-scale, requires significant efforts and costs, then you are definitely better off choosing a dedicated team [https://8allocate.com/dedicated-teams/] . In case you need / want to meet as soon as possible and get high-quality design and service, then this model will also be for you good choice.

 



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